Question

Required information Use the following information to answer questions [The following information applies to the questions displayed below.) The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 $ $ 46,000 9,500 55,000 42,000 18,200 33,700 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 188,000 200,000 16,000 46,000 95,500 1,100,000 558 Exercise 15-10 Journal entries for overhead LO P3 1. Incurred other overhead costs (record credit to Other Accounts). 2. Application of overhead to work in process. Prepare journal entries for the above transactions for the month of May.

Answer 1

Answer is given below

journal entries for the month of May

Transaction Credit Debit $95,500 General Journal Manufacturing overhead To Other Accounts (Being other factory overheads incurred) $95,500 Transaction Credit Debit $110,000 General Journal Work in process Account To Manufacturing Overhead (Being manufacturing overhead applied to Work in process Account $110,000 Working note: Predetermined overhead cost based on direct labor cost Direct Labor cost Overhead applied to work in process Account 55% $200,000 $110,000